State AGs Vow Continued Multistate Probes Against Big Tech

It’s vital for state attorneys general to band together in multistate investigations against tech platforms because it’s the only way to get proper relief, AGs from both parties said Wednesday in Washington, citing children’s privacy and antitrust.

“Big Tech is clearly the main point of emphasis for Tennessee,” said Tennessee AG Jonathan Skrmetti during a National Association of Attorneys General panel: Tech companies scaled up so fast with such a broad reach that they’re “impacting society in ways we still haven’t quite figured out,” he said. Government hasn’t provided “sufficient oversight,” and AGs haven’t been “very sophisticated” collectively because the experts are working in the private sector, he said.

AGs don’t have the resources to pursue every case, so multistate investigations enable AGs to obtain relief they couldn’t secure alone, said Maryland AG Brian Frosh (D). He said Maryland’s Republican administration made it a priority to “not fund” his office: “We’ve been constrained by a lack of resources. I only wish we had enough lawyers to litigate every case.”

There are “world-wide questions” about data privacy on social media platforms, said Nebraska AG Doug Peterson (R). Multistate efforts are critical to consumer protection enforcement due to the cost of investigating, said Pederson, noting both Republicans and Democrats are committed to cooperation.

Former Maine AG James Tierney (D) warned the panel that multistate work can distract from grassroots needs within a state. When deciding whether to join multistate efforts, Frosh said the decision is often made by staff. “I rarely disagree with them,” said Frosh. “Our folks are very smart. They’re aggressive.” Frosh noted he’s “always trying to get a little bit more” when settling with or charging violators: “I think I probably give my staff a little bit of heartburn whenever they come to me and say here’s what’s on the table and I say we can do better.”

Illinois AG Kwame Raoul (D) said social media platforms should self-police when dealing with “negative impacts” on children and online retailers combating fake goods and artificial pharmaceuticals. Frosh agreed with Raoul and Skrmetti, saying AGs need to protect the data of society’s “most vulnerable citizens.” Entire industries have been created to abuse the data of this population, said Frosh, citing activity from predatory lenders charging up to 360% interest.

Everybody knows “people are spending enormous amounts of time plugged into their social media,” said Skrmetti: There's a “good body of evidence” of the “really negative impacts on everybody, but especially on kids.” The first step is platform “transparency,” said Skrmetti: That includes analyzing what various companies “knew” and “what decisions they made as a result of that.” Having a “monster cannon” of liability to point at companies puts AGs in a position to “fix things,” he said. The impact on society is going to take generations to understand, he added. It’s less important to conduct “cash-grab” cases than it is to stop misconduct that platforms know causes addiction and mental health damage, he said: There should be a “bright line” and “severe consequences.”